Review of Chapter 27:Money Management Money means different things to

different people. For some, it’s tied to emotions.

A checking account offers a safe, convenient alternative to paying in cash, but it must be used responsibly.

Review of Chapter 27:Money Management Buying goods with credit allows you to

have items now and pay for the later Different types of credit included credit

cards, installment accounts and loans

Review of Chapter 27:Money Management A financial plan outlines future spending

based on income, expense and priorities. By creating a financial plan, you devise a

way to manage your spending and saving

Review of Chapter 27:Money Management Making a financial plan for a family can

be more difficult than making an individual plan because each family member may have different values and priorities about money management

Effective, usable financial plans reflect the needs, wants and resources of the family’s stage of development

Review of Chapter 27:Money Management Financial danger signs:

Paying only the minimum amount due on credit accounts

Paying regular monthly bills with loans or savings

Using credit to pay for items that are normally paid for with cash

Not knowing how much your total debt is and how much interest you’re paying

Depending on irregular income, such as overtime or tax refunds, to pay bills

CONSUMER SKILLSBeing a Good Consumer Chapter 28.1

Objectives Explain how skillful consumers judge

quality price Explain what ‘comparison shopping’

means Describe impulse buying Give tips for saving money Recognize and explain different ways

advertisers try to get you to buy their product

Vocabulary: Consumer Bargain Unit price Comparison shopping Warranty Impulse buying Direct advertising Indirect advertising

A consumer is simply a person who purchases goods and services.

Traits of Skillful Consumers

To be a Skillful Consumer,… Become familiar

with available products, prices, and standards of quality

Read and do research to learn what features to look for or avoid

Use self-discipline to resist society’s message to buy more than you need

What is Quality? “They just don’t make things like they

used to” “I’ll never buy that brand again” If something has quality:

It is well-made Works right Will last

Two Consumer Advocate Groups

These two groups test products in laboratories and then report to readers

This information is available at the public library

internet

Consumer Reports Consumers Research Magazine

To be a true bargain, you must look at four conditions:The product is one you need, want, and will useThe item’s quality is suitableThe product sells at a price you’re willing to payA reliable dealer sells the item

A Fair Price

Comparison Shopping Comparison Shopping means you look

at the same item in several stores to compare quality and price before you buy

Tips for comparing: Know what you want (know features) Use the telephone (call around) Compare similar items Check any warranty Compare credit terms Check the return policy

A written guarantee

Warranty:

Impulse Buying “I just couldn’t resist” Impulse buying is purchasing items

without previous consideration or thought

Retailers promote impulse buying in stores Check-out aisles

Controlling Impulse Buying You must know

what you truly need and can afford to pay

Bring a shopping list- helps you focus on what you intend to buy

Only take enough money to cover what you’ve planned to buy- no credit cards!

Analyzing Advertising Advertising is everywhere!

Television Radio Newspapers Magazines Buses Billboards Clothing Internet…

Advertising Techniques Direct Advertising tries to convince

you to buy a particular product by appealing directly to your values focus on glamour, health, happiness, good

looks, love Indirect Advertising is more subtle

celebrity association to a product, printing of company or product names on clothing

A Critical Eye Learn to separate

fact from fiction Recognize ‘no-

promise’ promises Conditional words

such as ‘can’ and ‘often’

Watch out for below-cost sales

Be careful of percent-off ads Store raises prices

then advertises ‘30% off selected items’

Get the whole story Fees Cost of everything

else you’ll need

Use Your Knowledge Max has a $.75 coupon for a brand-name

toothpaste that costs $3.45 without the coupon. The house brand, which is the same size, costs $2.65. Which should he buy?

Check Understanding What are two traits of a good consumer? What conditions make a purchase a

bargain? What is a warranty? How can a person control impulse

buying? Describe two types of advertising

techniques.

CONSUMER RIGHTS AND RESPONSIBILITIES Chapter 28.2

Consumers have both rights and responsibilities in the marketplace

State and federal laws protect consumers’ interests, or rights

At the same time, however, consumers also have responsibilities. To earn your rights as a consumer, you have to live up to your responsibilities.

Consumer Rights: Consumers have 4 major rights:

To safety To be informed To choose To be heard

Consumer responsibilities: Be careful Be considerate shoppers who treat

merchandise as carefully as if they owned it

Pay for all merchandise (no shoplifting) Save sales records and receipts Follow product instructions

Consumer complaints You can file a consumer complaint You can return merchandise for a refund

or replacement You can write a letter of complaint Several government agencies and

business organizations (like Better Business Bureau) can help

Consumers can dispute thought small claims court

Reflection Answer the following reflection questions

on the back of your note sheet1. Many people seem to believe that

happiness comes through possessions. Do you agree? Support your answer with examples.

2. Some people admit to being “shopaholics”. When does this trait become a problem?

Do you struggle with impulse buying? If yes, provide and example. If no, why do you think you can stay away from impulse buying?

Should consumers be able to claim their rights if they don’t live up to their responsibilities? Explain.